The Department of Health and Human Services’ Office of Inspector General today issued a report identifying vulnerabilities in the hospital wage index system for Medicare payments. “As a result of these vulnerabilities, wage indexes may not always accurately reflect local labor prices and, therefore, Medicare payments to hospitals and other providers may not be appropriately adjusted to reflect local labor prices,” the report says. The Centers for Medicare & Medicaid Services uses area wage indexes to adjust hospital payments annually to reflect local labor prices. CMS calculates each area’s wage index based on wage data submitted by acute care hospitals in their Medicare cost reports. OIG issued a number of recommendations for addressing the vulnerabilities.

Related News Articles

Headline
The Government Accountability Office today named three new members to the Medicare Payment Advisory Commission through April 2023. They are: Wayne…
Headline
More than half of U.S. adults aged 70 and older have experienced a disruption in their medical care during the first month of social distancing for COVID-19,…
Headline
The AHA and other national hospital organizations today urged the Department of Health and Human Services and Centers for Medicare & Medicaid Services to…
Headline
The Medicare Hospital Insurance Trust Fund will have sufficient funds to pay full benefits until 2026, according to the latest annual report from the…
Headline
The Centers for Medicare & Medicaid Services recently granted Section 1135 Medicaid waivers for the COVID-19 emergency to Puerto Rico and the Commonwealth…
Headline
The Centers for Medicare & Medicaid Services clarified that the agency is waiving the Medicare coverage requirement for a three-day prior hospitalization…